Economic Resources Flashcards

1
Q

What are the four factors of production?

A

Land, Labour, Enterprise and Capital

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2
Q

What do firms do with these resources?

A

Turn them into products that they sell for profit

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3
Q

What is Labour?

A

Includes all of the workforce in an economy

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4
Q

Is every worker unique with different skills?

A

Yes

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5
Q

What is the value of a worker called?

A

Human capital

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6
Q

How can a worker be valued?

A

By the income they earn, education and training, and likelihood to increase a businesses human capital

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7
Q

What is Land?

A

It encompasses all of the natural resources that come from the earth that are used in the production of goods or services

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8
Q

What is Capital?

A

Has a number of meanings e.g. money

-Refers to the man-made aids that are used in the production process e.g. machinery, tools, factories and offices

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9
Q

Will capital goods bring a stream of income in the future?

A

Yes

E.g. a car being used as a taxi is a capital good, rather than one just for leisure

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10
Q

What is Enterprise?

A

The entrepreneur takes land, labour and capital and organises them in order to produce products that will be profitable

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